Monday, September 9, 2013

Free Shipping Software Solutions: Bargain or False Economy?



As the old saying goes, “there’s no such thing as a free lunch.”

We always hear that. Yet, as we go about our daily lives, it is so easy to get carried away with free offers. We take store credit cards for freebies and discounts. We wait hours in endless lines for free concert tickets. We even drive a few extra miles to the next gas station to claim our loyalty reward.

Yes, we all love free stuff. Everyone agrees there’s nothing wrong with that. But, when you’re looking for integrated shipping software to streamline various aspects of your company’s logistics process, there is good reason to look beyond the free stuff.

Ask yourself this question: Why do some shipping companies spend thousands of dollars for liner agency software solutions when they can get one for free?

The answer is simple:  In the maritime supply chain business, using “free” software does not necessarily mean less expenditure and more savings. That goes for most other revenue-generating stuff too.

For example, leading forwarders such as FedEx, UPS, and DHL offer marine software solutions for vessel and port operators at no cost. Do you know why they do it? No, not out of pure love. (This is not a church; this is business.) Let's face it -- everyone is in this to make money. That is why it is called “business”.  The truth is that these companies more than make back the cost of their software by monopolizing their clients’ business.

Here’s what happens when you settle on free software instead of going for more reliable liner principal software:
  •  You are stuck with the company in all your shipping transactions involving their software.
  •  You do not have control over the maintenance and development of the software.
  •  You will have difficulty customizing the software to suit your changing needs.
  •  With limited control over free software, you will not be able to compete with other industry players.
The overall result is gross inefficiency across your entire logistics network. What was thought to be a lucky bargain turns out to be false economy.

So, here’s your takeaway:

Never build your logistics system upon free platform. Instead look for a reliable shipping software company with extensive experience in developing and implementing integrated shipping software solutions.

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